2019 Redistribution Through Budget Highest in Last 10 Years - Forecast

2019 Redistribution Through Budget Highest in Last 10 Years - Forecast

Sofia, January 4 (BTA) - The redistribution through the state budget's revenue part is planned to reach 37.7 per cent in 2019, which is the highest percentage in the last ten years, according to a forecast by the Institute for Market Economics (IME) published on Friday.

Record-high revenues of 43.9 billion leva are projected to enter the Exchequer this year. Bulgarians will produce an average of 319 million leva per calendar day, which means that close to 138 days will be needed to fill up the public purse and ensure public expenditures. This brings this year's Tax Freedom Day to May 18, the forecast shows.

Tax Freedom Day is a symbolic date, when theoretically the Exchequer would be full if all earned income until then had been collected. Last year it fell on May 13 and in 2017 it was on May 16.

According to the forecast, this year EU taxpayers will 'unburden' Bulgarian taxpayers for slightly over 8 days of work for the State, given the nearly 2.7 billion leva of EU aid set in the budget.

In 2019, value-added tax will take the most time, 34 days, to produce. Social insurance will require 24 days, and health insurance 9 days. Excise duties will take close to 17 days to generate. Personal income tax will be generated in 12 days, while corporate income tax will be generated in a little more than 8 days. Close to 7 days of work will be necessary to earn the money for central and municipal government fees, the IME said.

The forecast reveals a stable upward trend in the number of days needed to fill up the public purse, pushing Tax Freedom Day ever later in the year. This means that the tax burden in Bulgaria is increasing. RY/DS